Question - Keith Company is a two-division firm and has the following information available for this year:
Common fixed costs $ 800,000
Direct fixed costs of Division A 200,000
Direct fixed costs of Division B 400,000
Sales revenue of Division A 800,000
Sales revenue of Division B 1,200,000
Variable costs of Division A 240,000
Variable costs of Division B 360,000
What is Division A's contribution margin?
A) $ 840,000
B) $ 440,000
C) $ 560,000
D) $ 240,000